You want to be a millionaire when you retire in 40 years. You can earn A 12.5 percent annual return

You want to be a millionaire when you retire in 40 years. You can earn A 12.5 percent annual return. How much more will you have to save each month if you wait 10 years to start saving versus if you start saving at the end of this month?    A.  $19.22 B.  $54.13 C.  $108.47 D.  $141.15 E.  $183.38 FVA40 years = $1,000,000 = C × [{[1 + (0.125/12)]40 × 12; C = $72.53 FVA30 years = $1,000,000 = C × [{[1 + (0.125/12)]30 × 12; C = $255.91 Difference = $255.91 - $72.53 = $183.38

116.

You have just won the lottery and will receive $540,000 as your first payment one year from now. You will receive payments for 26 years. The payments will increase in value by 4 percent each year. The appropriate discount rate is 10 percent. What is the present value of your winnings?    A.  $6,221,407 B.  $6,906,372 C.  $7,559,613 D.  $7,811,406 E.  $8,003.11

117.

You are preparing to make monthly payments of $72, beginning at the end of this month, into an account that pays 6 percent interest compounded monthly. How many payments will you have made when your account balance reaches $9,312?    A.  97 B.  100 C.  119 D.  124 E.  131   t = ln 1.6467/ln 1.005; t = 100 payments